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:After a monetary or fiscal expansion there will always be a temporary increase in the production and employment, even if … be not only a temporary short-term increase in the production and employment, but furthermore a permanent long-term one … fixed long-term production reflecting a fixed full employment level underlies the conventional theory, unless a long …
Persistent link: https://www.econbiz.de/10013053400
We study the role of firm heterogeneity in affecting business cycle dynamics and optimal stabilization policy. Firms differ in their degree of cyclicality, and hence, exposure to aggregate risk, leading to firm-specific risk premia that influence resource allocations. The heterogeneous firm...
Persistent link: https://www.econbiz.de/10014031130
We study the role of firm heterogeneity in affecting business cycle dynamics and optimal stabilization policy. Firms differ in their degree of cyclicality, and hence, exposure to aggregate risk, leading to firm-specific risk premia that influence resource allocations. The heterogeneous firm...
Persistent link: https://www.econbiz.de/10013251194
We study the role of firm heterogeneity in affecting business cycle dynamics and optimal stabilization policy. Firms differ in their degree of cyclicality, and hence, exposure to aggregate risk, leading to firm-specific risk premia that influence resource allocations. The heterogeneous firm...
Persistent link: https://www.econbiz.de/10012415672
In a new Keynesian model with random search in the labor market, endogenous selection among heterogeneous workers amplifies fluctuations in unemployment and results in excess unemployment volatility relative to the efficient allocation. Recessions disproportionately affect lowproductivity...
Persistent link: https://www.econbiz.de/10012318150
We study the importance of wage rigidities for the monetary policy transmission mechanism. Using uniquely rich micro data on Swedish wage negotiations, we isolate periods when the labor market is covered by fixed wage contracts. Importantly, negotiations are coordinated in time but their...
Persistent link: https://www.econbiz.de/10011990062
, and employment) under a standard set of neoclassical conditions on production, consumer preferences, fiscal and monetary …
Persistent link: https://www.econbiz.de/10011903801
We study the importance of wage rigidities for the monetary policy transmission mechanism. Using uniquely rich micro data on Swedish wage negotiations, we isolate periods when the labor market is covered by fixed wage contracts. Importantly, negotiations are coordinated in time but their...
Persistent link: https://www.econbiz.de/10011542480